Assuring revenues are maintained or even improved in a merger or acquisition requires attention not on the financials but on the strategic. Revenue generation is an outcome measure of front-end business operations (sales, marketing, brand awareness, market lock-in, customer loyalty, etc.). Revenue improvement means understanding revenue as the effect not the cause. It means understanding an acquisition in the context of a bigger strategy. Sales is often an overlooked component of a merger and usually the first place to affect revenue improvements.
A transition represents a unique opportunity to seize on disruption and chaos and introduce new systems and procedures that capitalize on newly-acquired assets and capabilities. It is counterintuitive when the storm is lashing against the side of the boat to do anything but sit down and hold on for your life. Revenue improvement, however, means taking actions to harness the energy of the waves and wind that at first appear to be the danger.
Take strategic planning action in anticipation of your next merger or acquisition. Set a goal to improve revenues by more than just the sum of the two parties’ balance sheets. Then, back into an integration and communication plan that will ensure the desired synergies.